An LNG facility employing an enhanced nitrogen removal system that concentrates the amount of nitrogen in the feed stream to a nitrogen removal unit (NRU) to thereby increase the separation efficiency of the NRU. In one embodiment, the nitrogen removal system comprises a multistage separation vessel operable to separate nitrogen from a cooled natural gas stream. At least a portion of the resulting nitrogen-containing stream exiting the multistage separation vessel can be used as a refrigerant, processed to a nitrogen removal unit, and/or utilized as fuel gas for the LNG facility.